"We believe the Santo Domingo Project provides an attractive opportunity
for Capstone in a jurisdiction and local community that continues to
demonstrate strong support for the project. We will proceed in a very
measured and disciplined manner with a number of steps in our
stage-gate process to be completed prior to large capital expenditure
commitments. The positive Feasibility Study, combined with the initial
regulatory response to the Environmental Impact Assessment ("EIA") that
was filed in October 2013, gives us the confidence to advance the
project to the next stage-gate decision point in early 2015. We believe
this is a low-risk and relatively low-cost approach to increase the
value and maintain the optionality of the project," continued Mr.
Pylot.

"Important objectives for the next stage of the project development
include execution of a power purchase agreement, approval of the
Environmental Impact Assessment and a continued demonstrated social
license for the project. We will also assess an optimal financing
structure for the project prior to reaching the next decision point in
2015."

Highlights

Copper production will average 248 million pounds in the first five
years of full production. For the life of mine ("LOM"), average annual
copper production is 128 million pounds with 4.2 million tonnes of iron
concentrate and 16,000 ounces of gold.

Unlevered after-tax internal rate of return ("IRR") of 17.9% with a
payback period of 4.2 years. Assuming $1 billion of project level debt
- an amount that can be comfortably supported by the project - the IRR
increases to 27.3%.

C1 cash production costs(1) are estimated to be $0.49 per pound of payable copper (net of magnetite
iron and gold by-product credits and selling costs) in the first five
years of full production and negative $0.06 per pound of payable copper
LOM. On a co-product basis, total cash production costs are estimated
at approximately $1.50 per pound of payable copper and $43.00 per tonne
of magnetite iron concentrate.

Total initial capital costs are estimated to be $1.7 billion, which
includes a 16.5% contingency on total costs.

Sustaining capital over the LOM is expected to be $368 million.

18-year mine life with operations expected to commence two years after a
final construction decision.

Nominal average LOM plant throughput rate of 60,500 tonnes per day.

Off-take agreements (at market pricing) committed for 50% of the copper
and 50% of the iron concentrate, LOM, as part of the strategic
partnership with KORES for development of the Project.

Metal price assumptions used for the FS were a constant $2.85 per pound
of copper, $85 per tonne of magnetite iron concentrate at a 65% iron
content FOB Santo Domingo port ($1.31 per dry metric tonne unit
("dmtu") of iron), and $1,275 per ounce of gold.

Feasibility Study

The Santo Domingo FS was completed using engineering and consulting
firms experienced in the Chilean mining industry (AMEC International
Ingeniería y Construcción Ltda., BRASS Chile S.A., Knight Piesold S.A.,
NCL Ingeniería y Construcción Ltda., PRDW Aldunate-Vásquez Ingenieros
Ltda. and Roscoe Postle Associates Inc.), with significant
contributions to the report made by authors detailed below in
"Qualified Persons". The report was compiled by AMEC's Santiago office
with an accuracy range of -10% to +15% for capital and operating costs.
The estimates presented in the FS are current as of October 2013. The
capital cost estimates were also independently reviewed by two global
Engineering, Procurement and Construction Management ("EPCM") firms,
adding support to Capstone's confidence in the quality of the
estimates.

The Santo Domingo Project will include development of two open pit mines
using conventional drilling, blasting, loading with diesel hydraulic
shovels, and truck haulage, and a copper-iron concentrator designed to
process a nominal 65,000 tonnes per day ("tpd") to 60,000 tpd
(throughput is reduced in the latter years as the ore becomes slightly
harder) using SAG and ball milling, with conventional flotation
utilizing seawater to produce a copper concentrate. Magnetite iron will
be recovered from the copper rougher tailings using Low Intensity
Magnetic Separation ("LIMS"). The planned infrastructure for the
Project also includes a tailings storage facility; an iron concentrate
pipeline and a seawater supply pipeline; a port-located magnetite iron
concentrate filter plant and stockpile; a port-located copper
concentrate storage building; ship loading facilities; and on-site and
off-site infrastructure and support facilities.

The mine and the process facility will be located 50 kilometres
southwest of Codelco's El Salvador copper mine and 130 kilometres
north-northeast of Copiapó, near the town of Diego de Almagro. The
elevation at the site varies between 1,000 metres above sea level
("masl") and 1,280 masl with relatively gentle topographic relief.
Access to the project is one kilometre off the paved highway C-17 from
Diego de Almagro to Copiapó. The magnetite filter plant and stockpile,
the copper storage building and port infrastructure will be located in
Punta Roca Blanca, 41 kilometres north of Caldera. The name of the
proposed port development is Port Santo Domingo.

For the first five years of full operation, Santo Domingo will have an
annual average production of approximately 248 million pounds, or
approximately 110,000 tonnes, of copper. The LOM average is 128 million
pounds of copper (approximately 58,000 tonnes) per year over a period
of approximately 18 years. The total LOM production is estimated at 2.3
billion pounds, or approximately 1 million tonnes, of copper.

For the first five years of full operation the average magnetite
concentrate production is estimated to be 3.3 million dry metric tonnes
("dmt"). The iron ore concentrate production will increase to an
average of 4.2 million dmt per year over the mine life with a total
estimated production of approximately 75.1 million dmt of iron
concentrate.

Mineral Resource Estimate

David W. Rennie of Roscoe Postle Associates Inc. ("RPA") (then Scott
Wilson RPA) prepared the initial Mineral Resource estimates for the
property in 2006 and 2007. Since then RPA has carried out several
updated resource estimates, with the most recent being in August 2012.
The current Mineral Resource estimate of August 2012 for the property
is summarized below.

Mineral Resources, August 31, 2012, Santo Domingo Property

Zone

Mt

%CuEq

%Cu

g/t Au

%Fe

Measured (SDS/Iris)

SDS (1-4)

63.3

0.95

0.62

0.083

31.3

Iris (5-6)

1.54

0.46

0.43

0.052

25.3

Total Measured

64.8

0.94

0.62

0.082

31.2

Indicated

SDS (1-4)

214

0.72

0.33

0.045

27.4

Iris (5-6)

111

0.63

0.19

0.028

26.0

Iris Norte (7-8)

92.3

0.67

0.12

0.015

26.7

Indicated (SDS/Iris)

417

0.68

0.25

0.033

26.9

Estrellita

31.7

n/a

0.53

0.050

n/a

Total Indicated

449

-

0.27

0.034

25.0

Measured and Indicated

514

-

0.31

0.040

25.8

Inferred

SDS (1-4)

29.8

0.55

0.26

0.037

23.6

Iris (5-6)

5.05

0.60

0.18

0.024

26.7

Iris Norte (7-8)

20.5

0.70

0.08

0.009

28.0

Inferred (SDS/Iris)

55.4

0.61

0.19

0.025

25.5

Estrellita

2.7

n/a

0.48

0.050

n/a

Total Inferred

58.1

-

0.20

0.026

24.3

(1) CIM definitions (2010) were followed for Mineral Resources and are
inclusive of Mineral Reserves. (2) Totals may not add due to rounding.
(3) Mineral Resources for SDS/Iris are estimated at a cut-off grade of
0.25% CuEq. The cut-off grade for Estrellita was 0.3% Cu. (4) CuEq
grades are calculated using average long term prices of US$3.50/lb Cu,
US$1,500/oz Au and US$1.94/dmtu Fe (US$120/dmt conc. at 62% Iron).

The estimate was carried out using a block model constrained by three
dimensional wireframe envelopes. The wireframes were constructed
primarily from lithological boundaries. The principal rock types used
for these models were the manto-hosting volcanic and sedimentary units
which were clipped against fault boundaries and wireframe models of
post-mineral dykes or sills. Eight domains were created within the
deposit and three of these (Zones 1, 2 and 3) were further subdivided
into magnetite-rich and magnetite-poor variants. Much of the geological
interpretation had been done for the 2009 and previous estimates. For
the current estimate the wireframe modelling consisted of updating the
earlier work with the latest drilling results. RPA notes that only
minor modifications to the interpretations were required.

Grades for copper, gold, total iron and magnetic susceptibility (MS)
were estimated into the blocks using Ordinary Kriging (OK). Estimates
of recoverable iron (Fe_rec) and bulk density were carried out from the
estimated iron and MS grades using linear regression relationships.
Copper equivalent (CuEq) grades were calculated from the estimated Cu,
Au, and Fe_rec, using recoveries estimated from recent metallurgical
testing.

The Mineral Resources for SDS/Iris were reported at a cut-off grade of
0.25% CuEq, which is consistent with the previous estimate.

Readers are advised that Mineral Resources that are not Mineral Reserves
do not have demonstrated economic viability. Mineral Resource estimates
do not account for mineability, selectivity, mining loss and dilution.
These Mineral Resource estimates include inferred Mineral Resources
that are normally considered too speculative geologically to have
economic considerations applied to them that would enable them to be
categorized as Mineral Reserves. Even though test mining has been
undertaken in areas with Measured and Indicated class Mineral
Resources, there is no certainty that inferred Mineral Resources will
be converted to Measured and Indicated categories through further
drilling, or into Mineral Reserves, once economic considerations are
applied.

Mineral Reserve Estimate

Carlos Guzmán, (FAusIMM of NCL Ingeniería y Construcción Ltda.) prepared
the following Mineral Reserve estimate, effective May 2, 2014. Based
on the Mineral Resource estimate, a standard methodology for pit limit
analysis, mining sequence, and cut-off grade optimization, including
application of mining dilution, process recovery, economic criteria and
physical mine and plant operating constraints, has been followed to
design the open pit mines and determine the Mineral Reserve estimate
for each deposit as summarized in the Mineral Reserve table.

Mineral Reserves

Reserve Category

Ore Grade

Contained Metal

Ore (Mt)

Cu(%)

Fe(%)

Au(g/t)

Cu (Mlbs)

Fe Conc. (Mt)

Au(kOz)

Proven Reserves

65.3

0.61

30.9

0.08

878.3

8.2

169.9

Probable Reserves

326.4

0.24

27.6

0.03

1,692.1

66.9

336.4

Total Reserves

391.7

0.30

28.2

0.04

2,570.4

75.1

506.3

(1) Mineral Reserves are reported as constrained within Measured and
Indicated pit designs, and supported by a mine plan featuring variable
throughput rates and cut-off optimization. The pit designs and mine
plan were optimized using the following economic and technical
parameters: metal prices of $2.75/lb Cu, $1,275/oz Au and $80/dmt of Fe
concentrate; recovery to concentrate assumptions of a maximum of 93.6%
for Cu and 75% for Au with magnetite concentrate recovery varying on a
block-by-block basis; copper concentrate treatment charges of $70/dmt,
$0.07/lb of Cu refining charges, $5.0/oz of Au refining charges,
$48/wmt and $3/wmt for shipping Cu and Fe concentrates respectively;
mining cost of $1.53/t; process and G&A costs of $7.84/t ore processed;
average pit slope angles that range from 37.6º to 43.6º; a 2% royalty
rate assumption, and an assumption of 100% mining recovery. (2)
Rounding may result in apparent summation differences between tonnes,
grade and contained metal content. (3) Tonnage and grade measurements
are in metric units. Contained gold ounces are reported as troy ounces.

Mine Production Schedule

The final pit design was based on a Lerchs-Grossman shell run at a
copper price of $2.75 per pound and $80 per tonne for magnetite
concentrate. Two pits (the Santo Domingo pit and the Iris Norte pit)
were designed for the most economic extraction of the resources.

The total annual material movement from the mine peaks at 107.5 million
tonnes per year during Years 1 to 4. The limit on the ore production
is the number of benches that it is possible to mine in a year in a
single phase, or vertical development per phase.

The Mine Production Schedule Summary and the Plant Feed Production
Schedule can be accessed HERE.

The cash flow model is supported by a mine plan developed to an annual
level of detail. Approximately 45 million tonnes of material would be
pre-stripped in the year prior to start-up of operations. The life of
mine plan contemplates mining of 1.7 billion tonnes of material
consisting of 1.3 billion tonnes of waste rock and overburden and 0.4
billion tonnes of ore over an 18 year mine life. The overall strip
ratio for the project is 3.3:1. The plan developed for the project
mines higher copper grades in the first five years of the mine life
with progressively lower copper grades and higher iron grades for the
remaining 13 years.

The copper and magnetite recovery plant and associated service
facilities will process run of mine ("ROM") ore delivered to a primary
crusher feeding a conventional process of crushing and grinding of the
ROM ore, copper flotation (in seawater), and magnetite recovery from
copper rougher tailings. Copper concentrate will be produced at the
process facility for trucking to (and stockpiling at) the port.
Magnetite concentrate will be thickened on site prior to being pumped
via a concentrate pipeline to the port. At the port, the magnetite
concentrate will be washed, dewatered and stockpiled. Both the copper
and magnetite concentrates will be loaded onto ships for transportation
to third-party smelters.

Grinding and flotation testwork has established mill design parameters
and copper recovery estimates for the study. The mill will process a
total of 392 million tonnes of ore over an approximate 18-year mine
life at an average grade of 0.30% copper, 0.04 grams per tonne gold,
and 28.2% iron. Mill throughput will vary from 65,000 tonnes per day in
the first five years, to 60,000 tonnes per day in the latter years when
throughput will be reduced as the ore becomes slightly harder. Average
mill throughput over the 18-year mine life is projected to be 60,500
tonnes per day. Metal recoveries for copper and gold are estimated at
89.1% and 56.3% respectively, averaged over the mine life.

Iron recovery was determined from magnetic separation testing on the
copper flotation rougher tailings. Iron recoveries vary directly with
the mineralogy of the iron present in the ore. The FS does not consider
any process to recover the specular hematite portion of the iron.
Therefore, iron recovery is presented in terms of the total mill feed
mass recovery. For the life of the project this averages 19.2%, and
ranges from a low of 10.1% in year five of the project to a high in
excess of 25% in the last four years of the project. Testing indicates
that a magnetite concentrate grading 65% iron can be maintained
throughout the life of the project. All metallurgical data used in the
development of the recovery and concentrate grade estimates for the
cash flow models are based on tests conducted using seawater.

An annual production schedule showing tonnes processed, grades and
recoveries can be accessed HERE.

The tailings storage system will consist of a tailings storage facility
("TSF") located north of the proposed mine. The TSF is designed to
store approximately 314 million tonnes of conventional thickened
tailings, which is sufficient capacity for the approximately 18 years
of the project life. Storage of both seawater and process water is
proposed in lined ponds near the plant site. Water make-up is proposed
to be untreated seawater. Based on the conventional thickened tailings
disposal method, the estimated water make-up will be approximately
1,280 m3/h (~355 L/s).

Offsite Infrastructure and Services

The FS envisages a greenfield port to be located in the Punta Roca
Blanca area (Port Santo Domingo) on the coast 41 kilometres north of
Caldera in the Atacama Region. This site will include the terminal
station of the concentrate pipeline, storage tanks and filter plant for
magnetite concentrate, a copper concentrate storage building, a
magnetite concentrate stockpile, seawater intake, integrated building
(offices, laboratories, change house and lunch room), guard checkpoint,
workshop and warehouse; and ancillary facilities to support the
operation. The port facility has been designed to accommodate the
current maximum throughout requirements of 5.4 million tonnes per
annum. In addition, there is another 35% of capacity available for
third party use. Capstone is seeking a partner to share the capital
costs of the port; however 100% of the capital has been included in the
FS.

The Santo Domingo Project will be designed to use seawater, which will
be pumped to the mine/process site via a 111.5 kilometre long pipeline
from a pump station to be located at Port Santo Domingo. While the
flotation process will use seawater, there will be small desalination
plants at both the site and at the port to provide water where seawater
cannot be used (i.e. for potable water, reagent mixing, copper
concentrate washing at site, and magnetite washing at the port).

A magnetite concentrate pipeline will transport magnetite concentrate
from the process plant to the filter plant at the port via a pipeline
starting at an elevation of 1,027 masl and ending at the port at an
elevation of 16 masl. The copper concentrate will be trucked from the
site to Port Santo Domingo.

Both the water and the concentrate pipelines will use the same
right-of-way and will run parallel to existing roads for the majority
of the distance from the mine area to the port. The pipeline route will
largely follow the valleys with the single route high point located
approximately 45 kilometres from the mine site near Anglo American's
Mantoverde mine operation.

A 220 kV transmission line has been designed to supply power from the
Diego de Almagro substation to the Santo Domingo site. The line is 8.9
kilometres long, running underground for the first 0.5 kilometres.

Access to the mine site is six kilometres south of Diego de Almagro on
Highway C-17. This section is paved and in good condition. Due to the
location of the planned Iris Norte pit, process facility and tailings
storage facility, approximately 18.7 kilometres of the existing C-17
road will require relocation. The existing C-17 road will remain in
service during the relocation effort. In addition, a new bypass road
will be built around Diego de Almagro to minimize traffic impacts from
the project. The Diego de Almagro bypass is approximately 4.7
kilometres in length and will be built in the early stage of the
project.

Power

Santo Domingo's mine and port sites will be connected to the Central
Interconnected System (Sistema Interconectado Central or "SIC") which
covers the central part of Chile and has coal and diesel thermoelectric
plants in the project area. The closest connection point between the
SIC and the mine site is via a direct connection to the Diego de
Almagro substation, located about five kilometres from the mine area.

The FS has assumed a cost for power of $0.124 per kWh, which is
consistent with rates being discussed in current negotiations with
potential power providers. The estimated annual average operational
power demand for both the mine and port is 86 MW, with a maximum (peak)
demand of 112 MW.

Capital Cost Estimate

The initial capital cost has been estimated at $1.7 billion and is shown
in the following table. This estimate is based upon a foreign exchange
rate of between 517 and 557 Chilean Pesos ("CLP") to US$1.00 during the
development period of 2014 through 2017, with a constant 532 CLP to
US$1.00 foreign exchange rate from the start of operations in 2018 to
the end of the life of mine. The initial capital cost estimate was
independently reviewed by two global EPCM companies, with the completed
reviews confirming the estimate is within the accuracy range of -10% to
+15%.

Description

Total Amount (k$)

Mine Equipment

105,853

Mine Pre-Production Stripping

51,143

Crushing

44,020

Grinding

134,702

Flotation

60,844

Magnetic Separation

39,016

Thickening and Tailings Handling

56,147

Reagents

9,056

Copper Concentrate

12,697

Tailings Storage Facility

23,575

Plant/Mine Infrastructure

163,382

Seawater Pipeline

84,861

Magnetite Concentrate Pipeline

87,560

Port - Process

31,673

Port - Concentrate Handling/Loading

120,546

Port - Infrastructure

28,225

Total Direct Cost

1,053,300

Development - Indirects

183,122

EPCM Costs

115,323

Owner Costs

105,721

Contingency (16.5% of total costs)

242,306

Total Indirect Costs

646,472

TOTAL PROJECT

1,699,772

Mine pre-production stripping costs are estimated at $51 million and are
included in the Capital Cost Estimate. Life ofmine sustaining capital, estimated at $368 million over the 18 year mine
life, is not included in the above figure. Mine closure costs have been
estimated at $92 million and have been allowed for in operating costs.

Total Project Operating Costs (1)

Summary of Cash Costs

LOM Total(k)

LOM Average($/t)

LOM C1 Cost($/lb payable Cu)

Mining

2,471,905

6.31

1.12

Process

2,725,682

6.96

1.23

G&A

439,567

1.12

0.20

Cu Concentrate Transport (onshore
& offshore), Insurance & Sales

272,230

0.69

0.12

Sub-Total

5,909,384

15.09

2.67

By-Product Metal Credits

(3.05)

TC/RC Costs

0.32

TOTAL - C1 Cu Cash Cost (1)(net of Fe & Au by-product credits)

(0.06)

(1) These are alternative performance measures; please see "Alternative
Performance Measures" at the end of this release.

As shown, the estimated total C1 cash production costs for copper over
the life of the project are estimated at a negative $0.06 per pound of
payable copper, when including gold and iron credits. The co-product
total cash production costs are estimated at approximately $1.50 per
pound of payable copper and $43.00 per tonne of magnetite concentrate.

Sensitivities

Parameter

EBITD&A

After-Tax

or

IRR

NPV

IRR

NPV

Variation

Value

(%)

@ 8.0%

(%)

@ 8.0%

($M)

($M)

Copper Price ($/lb)

-20%

$2.28

14.8%

597.0

12.5%

368.2

-10%

$2.57

18.1%

875.6

15.2%

583.9

Base Case

$2.85

21.3%

1,154.1

17.9%

797.4

10%

$3.14

24.6%

1,432.6

20.6%

1,008.1

20%

$3.42

27.7%

1,711.2

23.2%

1,217.7

Magnetite Iron Price ($/dmtu Fe)

-20%

$1.05

17.6%

739.8

14.7%

482.9

-10%

$1.18

19.5%

946.9

16.4%

641.0

Base Case

$1.31

21.3%

1,154.1

17.9%

797.4

10%

$1.44

23.0%

1,361.3

19.4%

953.1

20%

$1.57

24.6%

1,568.4

20.7%

1,108.1

Total Operating Costs ($/t LOM average)

-20%

$11.81

25.0%

1,546.7

21.0%

1,091.5

-10%

$13.29

23.2%

1,350.4

19.5%

945.2

Base Case

$14.76

21.3%

1,154.1

17.9%

797.4

10%

$16.24

19.4%

957.8

16.3%

647.6

20%

$17.72

17.3%

761.5

14.5%

496.6

Initial Capital Costs ($M)

-20%

$1,359.8

27.2%

1,398.7

23.5%

1,043.3

-10%

$1,529.8

24.0%

1,276.4

20.5%

920.3

Base Case

$1,699.8

21.3%

1,154.1

17.9%

797.4

10%

$1,869.7

19.0%

1,031.8

15.8%

674.4

20%

$2,039.7

17.1%

909.5

13.9%

551.4

Power Cost ($/kWh)

-20%

$0.099

23.1%

1,340.3

19.4%

937.6

-10%

$0.112

22.3%

1,252.4

18.7%

871.6

Base Case

$0.124

21.3%

1,154.1

17.9%

797.4

10%

$0.136

20.2%

1,045.5

17.0%

714.9

20%

$0.149

19.0%

926.5

16.0%

623.6

Permitting

On October 29, 2013, Capstone formally submitted the Environmental
Impact Assessment for the Santo Domingo project. This initiated the
formal environmental assessment process, which is expected to take
approximately 15 to 18 months. For purposes of the FS schedule a period
of 16 months has been estimated. A critical permit for the operation of
the port, the Maritime Concession, is expected to be granted in the
fourth quarter of 2014.

Next Steps

Over the course of the next 10 months leading up to completion of the
first stage-gate decision point, Capstone will focus on:

Advancing project engineering.

Working with regulators and communities to obtain approval for the EIS
and secure the required social license.

Securing a long-term power purchase agreement.

Developing detailed marketing studies leading to expressions of interest
and/or letters of intent for at least 75% of the operation's output.

Securing the port concession.

Developing a robust project execution plan, including the assessment and
selection of available EPC and EPCM options for the construction of all
or portions of the project.

Assessing project and corporate financing alternatives.

The next gate will be the approval of the EIS, which is anticipated at
the end of the first quarter of 2015. The second gate will be when
engineering is advanced to approximately 60% to 65% with an estimate
accuracy of ±10%, expected in the third quarter of 2015. The final gate
will be at the point when engineering is effectively complete with a
definitive cost estimate of +10%/-5%, which is expected to be in the
first quarter of 2016. At each gate Capstone will evaluate the status
of the Project and communicate the next steps. Each decision will
reflect, among other factors, the progress made in the areas outlined
above, general and project specific market conditions, the financing
market, project economics and alternatives available to the company at
that time. The decisions will be targeted at maximizing the value of
the project to Capstone shareholders in a manner that ensures financial
flexibility for continued growth and security for the Company's
existing operations.

Technical Report

The Technical Report that will be prepared in compliance with National
Instrument 43-101 ("NI 43-101"), which will be based on the full Santo
Domingo Feasibility Study, will be filed under Capstone's profile on
SEDAR at www.sedar.com within 45 days.

Conference Call and Webcast Details

Capstone will host a conference call and webcast for investors and
analysts to discuss the Santo Domingo FS on Thursday, June 5, at 10:30
am Eastern Time (7:30 am Pacific Time).

The conference call replay will be available until June 19, 2014. The
conference call audio and transcript will be available on Capstone's
website within approximately 24 hours of the call at http://capstonemining.com/s/conference-calls.asp.

About Capstone Mining Corp.

Capstone Mining Corp. is a Canadian base metals mining company, focused
on copper. We are committed to the responsible development of our
assets and the environments in which we operate. Our three producing
mines are the Pinto Valley copper mine located in Arizona, US, the
Cozamin copper-silver mine in Zacatecas State, Mexico and the Minto
copper mine in Yukon, Canada. In addition, Capstone has two copper
development projects; the large scale 70% owned copper-iron Santo
Domingo project in Region III, Chile, in partnership with Korea
Resources Corporation, and the 100% owned copper-zinc Kutcho project in
British Columbia, Canada, as well as exploration properties in Chile
and Mexico. Using our cash flow and strong balance sheet as a platform,
Capstone's strategy is to continue to grow with mineral resource and
reserve expansions and exploration, and through acquisitions in
politically stable, mining-friendly regions. We will pace our growth
with our financial capacity, ensuring we retain, as a priority,
sufficient financial flexibility to meet the requirements of our
existing operations and our committed development projects, while
maintaining an adequate cushion to deal with market volatility and
operating risks inherent in the mining industry. Our headquarters are
in Vancouver, Canada and we are listed on the Toronto Stock Exchange
(TSX). Further information is available at www.capstonemining.com.

Cautionary Note Regarding Forward-Looking Information

This document may contain "forward-looking information" within the
meaning of Canadian securities legislation and "forward-looking
statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995 (collectively, "forward-looking
statements"). These forward-looking statements are made as of the date
of this document and Capstone Mining Corp. (the "Company") does not
intend, and does not assume any obligation, to update these
forward-looking statements, except as required under applicable
securities legislation.

Forward-looking statements relate to future events or future performance
and reflect Company management's expectations or beliefs regarding
future events and include, but are not limited to, statements with
respect to the estimation of mineral reserves and mineral resources,
the conversion of mineral resources to mineral reserves, the expected
timing for commencement of construction of the Santo Domingo Project,
the market for project debt as contemplated by the Capstone/KORES
development agreement for Santo Domingo, Capstone's ability to raise
its equity contribution to the project, the realization of mineral
reserve estimates, the timing and amount of estimated future
production, costs of production, capital expenditures, success of
mining operations, environmental risks, the timing of the receipt of
permits, the timing and terms of a power purchase agreement,
unanticipated reclamation expenses, title disputes or claims and
limitations on insurance coverage. In certain cases, forward-looking
statements can be identified by the use of words such as "plans",
"expects" or "does not expect", "is expected", "outlook", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words and
phrases or statements that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be achieved"
or the negative of these terms or comparable terminology. In this
document certain forward-looking statements are identified by words
including "scheduled", "plan", "planned", "estimated", "projections",
"projected" and "expected". Forward-looking statements are based on a
number of assumptions which may prove incorrect, including, but not
limited to, the development potential of the Santo Domingo project and
current and future commodity prices and exchange rates. By their very
nature forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Such factors include, among
others, changes in project parameters as plans continue to be refined;
future prices of commodities; possible variations in mineral reserves,
grade or recovery rates; accidents; dependence on key personnel; labour
pool constraints; labour disputes; availability of infrastructure
required for the development of mining projects; delays in obtaining
governmental approvals, financing or in the completion of development
or construction activities; objections by the communities or
environmental lobby of the Santo Domingo project and associated
infrastructure and other risks of the mining industry as well as those
factors detailed from time to time in the Company's interim and annual
financial statements and management's discussion and analysis of those
statements, all of which are filed and available for review on SEDAR at
www.sedar.com. Although the Company has attempted to identify important factors that
could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward looking statements.

Qualified Persons

The following qualified persons (QPs) have reviewed the content of this
news release and will be responsible for the preparation of their
relevant portions of the Technical Report that will be based on the FS:

Readers are cautioned that the conclusions, projections and estimates
set out in this news release are subject to important qualifications,
assumptions and exclusions, all of which are detailed in the
Feasibility Study and Technical Report. To fully understand the summary
information set out above, the Technical Report that will be filed on
SEDAR at www.sedar.com should be read in its entirety.

Alternative Performance Measures

"Total C1 Cash Production Costs" and "Total Project Operating Costs" are
Alternative Performance Measures. These performance measures are
included because these statistics are key performance measures that
management uses to monitor performance. Management uses these
statistics to assess how the Company is performing to plan and to
assess the overall effectiveness and efficiency of mining operations.
These performance measures do not have a meaning within International
Financial Reporting Standards ("IFRS") and, therefore, amounts
presented may not be comparable to similar data presented by other
mining companies. These performance measures should not be considered
in isolation as a substitute for measures of performance in accordance
with IFRS.

Cautionary Note to United States Investors

This news release contains disclosure that has been prepared in
accordance with the requirements of Canadian securities laws, which
differ from the requirements of U.S. securities laws. Without limiting
the foregoing, this news release refers to a technical report that uses
the terms "indicated" and "inferred" resources. U.S. investors are
cautioned that, while such terms are recognized and required by
Canadian securities laws, the SEC does not recognize them. Under U.S.
standards, mineralization may not be classified as a "reserve" unless
the determination has been made that the mineralization could be
economically and legally produced or extracted at the time the reserve
determination is made. U.S. investors are cautioned not to assume that
all or any part of indicated resources will ever be converted into
reserves. U.S. investors should also understand that "inferred
resources" have a great amount of uncertainty as to their existence and
as to whether they can be mined legally or economically. It cannot be
assumed that all or any part of "inferred resources" will ever be
upgraded to a higher category. Therefore, U.S. investors are also
cautioned not to assume that all or any part of inferred resources
exist, or that they can be mined legally or economically. Accordingly,
information concerning descriptions of mineralization and resources
contained in this news release may not be comparable to information
made public by U.S. companies subject to the reporting and disclosure
requirements of the SEC.